Huntsman Corporation recently announced that Innospec Inc. is expected to purchase Huntsman’s European surfactants business for $225 million. Under the terms, Innospec would acquire Huntsman’s manufacturing facilities located in Saint-Mihiel, France; Castiglione delle Stiviere, Italy; and Barcelona, Spain.

As part of the $225 million enterprise value, Huntsman would retain its related accounts receivables and trade payables. Net proceeds of the sale would be used to repay debt, which would be in addition to Huntsman’s recent $100 million debt reduction that occurred on July 22, 2016. The proceeds would also be in addition to Huntsman’s stated objective of generating more than $350 million of free cash flow in 2016.

Huntsman added: “The decoupling of our European surfactants business would allow us to concentrate our focus and grow businesses within our portfolio with greater long-term strategic fit. Additional reshaping of Huntsman will occur soon, as we are actively working towards a spin-off of our titanium dioxide, additives and textile effects businesses.”

Huntsman remains committed to its global surfactants business, including in the United States and Australia, where its differentiated surfactants businesses are backward integrated into essential feedstocks. Huntsman plans to retain certain core products strategic to its global agrochemicals lubes and certain other businesses. Upon consummating the planned transaction, Huntsman would enter into supply and long-term tolling arrangements with Innospec in order to continue marketing certain of these products.

Closing is expected to occur by the end of the fourth quarter of 2016, and is subject to customary conditions, including the representative bodies consultation processes where required by applicable law.